MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐    NGUYEN XUAN PHUONG         ANTECEDENTS AND OUTCOME OF EMOTIONAL SATISFACTION A STUDY OF HO CHI MINH CITY BANKING FRONT-LINE EMPLOYEES MASTER THESIS Ho Chi Minh City – 2011 2    MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐    NGUYEN XUAN PHUONG       ANTECEDENTS AND OUTCOME OF EMOTIONAL SATISFACTION A STUDY OF HO CHI MINH CITY BANKING FRONT-LINE EMPLOYEES Major Code : Business Administration : 60.34.05 MASTER THESIS Supervisor Doctor Nguyen Thi Mai Trang Ho Chi Minh City – 2011 3    UNDERTAKING I certified that research word titled “Antecedents and outcome of emotional satisfaction – a study of Ho Chi Minh City banking employees” is my own work I have myself studied and conducted the research process by the academic knowledge obtained from the MBA program and discussed with my supervisor By this letter, I would like to undertake that this is my own research project All information, data and survey results are true and never announced in any other research project Where material has been used from other sources it has been referred Ho Chi Minh City, May 2011 Nguyen Xuan Phuong 4    ACKNOWLEDGEMENT Actually, this thesis is completed due to the contribution of many people First of all, I would like to express my deepest gratitude to my supervisor, Doctor Nguyen Thi Mai Trang, for all she has done for me The thesis could not been finished without her great encouragements and dedicate helps from idea to the thesis format and content What I have learnt from her is as much as what I used to learn before Again, I would like to extend my sincere appreciation to her I would like to express my thanks to ANZ Bank Vietnam Ltd colleagues who help me to complete the qualitative research and all front line colleagues who helped me to complete the questionnaires Finally, I sincerely thank my parents, my younger sister and my little daughter to help me to overcome difficulties during time of attending the course as well as preparing the thesis My heartfelt thanks to you all Ho Chi Minh City, May 2011 Nguyen Xuan Phuong 5    ABSTRACT The economy has been developing more and more strongly, the competition among banks is fiercer and fiercer In order to run a bank’s business operation successfully, employees are like the blood of the bank Nowadays, many researches have done to explore many aspects of employees’ satisfaction However, when economy reaches a higher level, people needs also reach a higher level Not only physical needs are required, emotional needs are now an essential part Although emotional satisfaction was explored by foreign authors in recent years, research on emotional satisfaction is hard to find This is the reason why the purpose of this thesis is to explore antecedents and outcome of emotional satisfaction The research is conducted by organizing a survey and analyzing on 229 completed questionnaire Base on the results, some discussion on management implication are introduced to help management team in banks to keep key staff and attract good front line employees to work for them 6    CONTENTS CONTENTS 6  LIST OF TABLES 9  LIST OF FIGURES 10  ABBREVIATION 11  CHAPTER 1.  INTRODUCTION 12  1.1  Background   12  1.2  Problem Statement  . 14  1.3  Research Objectives  . 15  1.4  Research Methodology   16  1.5  Scope and Limitation   16  1.6  Thesis Structure   17  CHAPTER 2.  LITERATURE REVIEW AND MODEL 18  2.1  Emotional satisfaction   18  2.2  Employee emotional satisfaction and employee-perceived service quality   20  2.3  Antecedents of employee-emotional satisfaction   21  2.3.1  Role conflict   22  2.3.2  Role ambiguity  . 24  2.3.3  Role overload  26  2.3.4  Work‐family conflict  . 27  2.3.5  Task control stressors   29  7    2.3.6  Perceived‐fairness of performance appraisal  . 29  2.4  The Model   31  2.5  Summary   34  CHAPTER 3.  RESEARCH METHODOLOGY 35  3.1  Research Design   35  3.1.1  Research purpose   35  3.1.2  Research approach  . 35  3.1.3  Research process   38  3.2  Quantitative Analysis Framework   40  3.2.1  Measurement scale:  . 40  3.2.2  Target Population and Sampling Method   45  3.3  Data Collection Methods and Analysis   46  3.3.1  Data Collection  . 46  3.3.2  Analysis Method   46  3.4  Summary   48  CHAPTER 4.  DATA ANALYSIS AND RESEARCH FINDINGS 49  4.1  Sample Characteristics   49  4.2  Data Analysis  . 51  4.2.1  Evaluation of the measurement scale by using Cronbach’s Alpha:  . 52  4.2.2  Evaluation of the measure scale by using exploratory factor analysis (EFA):   53  4.3  Testing of hypotheses   57  4.3.1  The outcome of emotional satisfaction:   57  4.3.2  The antecedents of emotional satisfaction:   58  4.3.3  Other model testing:   59  8    4.4  Discussion   60  4.4.1  The effect of emotional satisfaction on employee‐perceived service quality   60  4.4.2  The effect of employee‐perceived fairness of performance appraisal on emotional  satisfaction   62  4.4.3  The effect of role ambiguity on emotional satisfaction  . 62  4.4.4  The effect of role conflict on emotional satisfaction   63  4.5  Summary   64  CHAPTER 5.  CONCLUSION AND RECOMMENDATIONS 65  5.1  Summary of findings and Research contributions  . 65  5.2  Managerial implications  . 66  5.3  Limitations and Future research   69  REFERENCES 71  APPENDIX INTERVIEWED FORM 74  ENGLISH VERSION 74  VIETNAMESE VERSION 76  APPENDIX SCREE PLOT OF ANTECEDENTS OF EMOTIONAL SATISFACTION 78  APPENDIX EXPLORATORY FACTOR ANALYSIS 79  APPENDIX TESTS FOR NORMALITY OF RESIDUALS 82  APPENDIX TESTS FOR HETEROSKEDASTICITY 86  APPENDIX TESTS FOR COLLINEARITY DIAGNOSTICS 87  9      LIST OF TABLES Table 3.1 Result of agreement in qualitative research 32 Table 3.2 Questions, factor and code of variables 38 Table 4.1 Sample Characteristics 44 Table 4.2 Employee emotional satisfaction among organizations 45 Table 4.3 Cronbach’s alpha 47 Table 4.4 Rotated Component Matrix 50 Table 4.5 Linear Regression analysis of outcome of emotional satisfaction 53 Table 4.6 Linear Regression analysis of antecedents of emotional satisfaction 54 Table 4.7 Descriptive analysis 55 10    LIST OF FIGURES Figure 2.1 Outcome of emotional satisfaction 27 Figure 2.2 Theoretical Model 28 Figure 3.1 Research Process 34 Figure 4.1 The adjusted model 52 80    3.2 EFA for Emotional Satisfaction: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 691 Approx Chi-Square 456.831 df Sig .000 KMO and Bartlett’s Test of Emotional Satisfaction Initial Eigenvalues Extraction Sums of Squared Loadings Compon ent Total % of Variance Cumulative % 2.693 67.313 67.313 717 17.913 85.226 432 10.809 96.036 159 3.964 100.000 Total % of Cumulative Variance % 2.693 Total Variance Explained of Emotional Satisfaction 67.313 67.313 81      3.3 EFA for Employee-perceived Service Quality Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 679 Approx Chi-Square 184.955 df Sig .000 KMO and Bartlett’s Test of Employee-perceived Service Quality Initial Eigenvalues Extraction Sums of Squared Loadings Compon ent Total % of Variance Cumulative % 2.058 68.591 68.591 557 18.582 87.173 385 12.827 100.000 Total 2.058 % of Cumulative Variance % 68.591 Total Variance Explained of Employee-perceived Service Quality 68.591 82    APPENDIX TESTS FOR NORMALITY OF RESIDUALS   ANOVAb Model Sum of Squares df Mean Square F Regression 117.643 39.214 Residual 110.357 225 490 Total 228.000 228 Sig .000a 79.951   ANOVA Test of Emotional Satisfaction Residuals  Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std Error -9.903E-17 046 Perceived Fairness on Appraisal 557 046 Role Ambiguity 427 -.153 (Constant) Role Conflict Beta t Sig .000 1.000 557 12.003 000 046 427 9.215 000 046 -.153 -3.297 001   T-Test of Antecedents of Emotional Satisfaction Residuals  83      Residuals Statisticsa Minimum Predicted Value Residual -1.9773077 Maximum Mean Std Deviation N 1.3982992 0000000 71831469 229 -2.304336 2.60348153 00000000 69571834 229 Std Predicted Value -2.753 1.947 000 1.000 229 Std Residual -3.290 3.717 000 993 229 Residuals Statistics of Emotional Satisfaction  84    Histogram graph of Employee-perceived Service Quality Residuals  Histogram graph of Emotional Satisfaction Residuals  85    Tests of Normality Kolmogorov-Smirnova Statistic Unstandardized Residual 059 df Shapiro-Wilk Sig 229 Statistic 051 982 df Sig 229 Test for Normality of Emotional Satisfaction  Q-Q Plot of Unstandardized Residuals of Emotional Satisfaction  005 86    APPENDIX TESTS FOR HETEROSKEDASTICITY Scatter Plot of Emotional Satisfaction 87    APPENDIX TESTS FOR COLLINEARITY DIAGNOSTICS 6.1 Collinearity Statistics of Antecedents of Emotional Satisfaction  ANOVAb Model Sum of Squares df Mean Square Regression 117.643 39.214 Residual 110.357 225 490 Total 228.000 228 F Sig 79.951 000a ANOVA Test Coefficientsa Unstandardized Standardized Collinearity Coefficients Coefficients Statistics Std Model B Error Beta t Sig .000 1.000 Tolerance VIF -9.903E-17 046 Perceived fairness of appraisal 557 046 557 12.003 000 1.000 1.000 Role Ambiguity 427 046 427 9.215 000 1.000 1.000 -.153 046 -.153 -3.297 001 1.000 1.000 (Constant) Role Conflict Collinearity Statistics 88    Variance Proportions Condition Dimension Eigenvalue Index Perceived fairness Const of appraisal Role Ambiguity Role Conflict 1.000 1.000 00 90 10 00 1.000 1.000 00 10 90 00 1.000 1.000 1.00 00 00 00 1.000 1.000 00 00 00 1.00 Variance Proportions 89    6.2 Collinearity Statistics of Role Conflict  ANOVAb Model Sum of Squares Regression df Mean Square F 59.162 19.721 Residual 168.838 225 750 Total 228.000 228 Sig 26.280 000a ANOVA Test Coefficientsa Unstandardized Standardized Coefficients Coefficients B Std Error Beta (Constant) 1.168 182 Conflict1 -.083 051 061 -.298 Conflict2 Collinearity Statistics t Sig Tolerance VIF 6.427 000 -.127 -1.635 103 549 1.822 045 095 1.366 173 685 1.460 050 -.465 -5.932 000 536 1.867 Conflict3 Collinearity Statistics 90      Collinearity Diagnosticsa Variance Proportions Condition Dimension Eigenvalue Index (Constant) Conflict1 Conflict2 Conflict3 1.000 01 01 01 01 089 6.520 50 28 08 15 061 7.908 49 07 89 00 053 8.458 00 65 03 84 3.797 Variance Proportions 91      6.3 Collinearity Statistics of Role Ambiguity:  ANOVAb Model Sum of Squares Regression df Mean Square 73.524 24.508 Residual 154.476 225 687 Total 228.000 228 F Sig .000a 35.697 ANOVA Test Coefficientsa Unstandardized Standardized Coefficients Coefficients B Std Error -2.636 271 Ambiguity1 305 059 Ambiguity2 003 187 (Constant) Ambiguity3 Beta Collinearity Statistics t Sig Tolerance VIF -9.739 000 382 5.196 000 558 1.792 052 004 061 952 557 1.796 053 252 3.524 001 590 1.694 Collinearity Statistics  92      Collinearity Diagnosticsa Variance Proportions Dimensi Condition Eigenvalue Index Ambiguity (Constant) Ambiguity Model on 1 3.922 1.000 00 00 00 00 032 11.077 85 00 04 33 025 12.454 11 12 46 66 021 13.691 04 88 50 01 Variance Proportions  Ambiguity2 93    6.4 Collinearity Statistics of Perceived Fairness of Appraisal system: ANOVAb Model Sum of Squares Regression df Mean Square 99.045 24.761 Residual 128.955 224 576 Total 228.000 228 F Sig 43.011 000a ANOVA Test Coefficients Model Unstandardized Standardized Coefficients Coefficients B Std Error Sig Beta (Constant) -2.094 170 Appraisal1 094 066 Appraisal2 -.099 Appraisal3 310 Appraisal4 t Collinearity Statistics Tolerance VIF -12.293 000 143 1.410 160 244 4.097 081 -.148 -1.223 223 173 5.776 081 460 3.842 000 176 5.669 238 2.654 009 313 3.198 05 149 Collinearity Statistics 94      Collinearity Diagnosticsa Variance Proportions Dimensi Condition Model on Eigenvalue Index (Constant) Appraisal1 Appraisal2 Appraisal3 Appraisal4 1 4.874 1.000 00 00 00 00 00 071 8.286 98 03 01 01 02 025 13.838 00 02 09 07 93 019 15.905 01 95 11 13 04 010 21.644 00 00 79 79 00 Variance Proportions    ... overload and work-family role conflict) and emotional satisfaction; • Task-control stressor and emotional satisfaction; • Employee-perceived fairness of appraisal system and emotional satisfaction; ... MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐    NGUYEN XUAN PHUONG       ANTECEDENTS AND OUTCOME OF EMOTIONAL SATISFACTION A STUDY OF HO CHI MINH. .. between task control stressor and emotional satisfaction among employees 2.3.6 Perceived-fairness of performance appraisal In research of Slatten about antecedents of emotional satisfaction, the